Excelerate, ITECO to co-develop LNG import terminal in Northern Vietnam

US-based Excelerate Energy has signed a term sheet with ITECO Joint Stock Company to jointly develop a greenfield LNG import terminal in northern Vietnam, as announced in its Q2 results report on August 8.

The Northern Vietnam LNG Terminal (NVLT) is projected to have a total import capacity of 1.2mn tonnes/year, constructed in two phases. The first phase of NVLT is expected to have a capacity of 0.7mn tonnes/year and aims to begin operations in 2027.

The project’s development remains contingent on the finalisation of definitive agreements, regulatory approvals, and other necessary conditions.

Vietnam is actively enhancing its infrastructure to support the growing LNG-to-power sector, which includes developing import terminals and storage facilities. A notable example is the Thi Vai LNG terminal, which received its first LNG shipment last year.

Commissioned by PV Gas, a subsidiary of state-backed PetroVietnam, the Thi Vai terminal initially has a handling capacity of 1mn tonnes/year. It includes a 180,000 m³ LNG storage tank, a jetty, and a regasification area. The terminal’s capacity is set to expand to 3mn tonnes/year in its second phase.

Thi Vai's terminal is expected to play a critical role in alleviating Vietnam's gas shortage, supplementing the gas supply to consumers such as the Nhon Trach 3 and 4 power plants, and serving industrial customers.

Vietnam has also initiated the commissioning phase of its second LNG terminal, with commercial operations scheduled to start in September. The Cai Mep LNG terminal, located in southern Ba Ria Vung Tau province, has a capacity of 3 million tonnes per year and is operated by Cai Mep LNG, a joint venture between Singapore-based Atlantic, Gulf and Pacific LNG (AG&P LNG) and Vietnamese petroleum trader Hai Linh Company.